A process for preparing granulated fertilizer materials, wherein urea phosphate is used as a granulating agent to assist in the agglomeration of finely divided solid particles into relatively uniformly sized granules. Urea phosphate, prepared by dissolving urea in phosphoric acid, is coated onto finely divided particles of fertilizer materials, and granulation is accomplished at a temperature within the thermoplastic range of the urea phosphate, wherein the urea phosphate plasticizes and induces adherence of the fine particles into relatively uniformly sized granules. Optionally, ammonia gas, clay, or micro nutrients may be added after granulation.